The HSBC Islamic Global Equity Index Fund was developed to enable a customer to make long-term investments and a diversified portfolio of assets, which corresponds to Islamic investment principles.
Major principles of Islamic Finance that differ from conventional finance are:
- each financial transaction is tied to a tangible, identifiable underlying asset
- no interest payments (Riba)
- no investment in companies that are engaged in alcohol and pork-based product production, gambling, and pornography
- no risk investments (Gharar)
- no speculating assets in the fund (Maisir)
- risk and profit sharing
You can see more details about the fund at the bank's site.
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